Transportation Border Working Group Towards a More Secure and Efficient Border: Facilitation and Security in North American Trade and Transportation Washington, DC April 30, 2004

NAFTA Trade  U.S.-Canada Trade 1993 = $211 billion 2003 = $393 billion  U.S.-Mexico Trade 1993 = $81 billion 2003 = $235 billion  Role of Trucks in NAFTA U.S.-Mexico Trade = 81% trade value U.S.-Canada Trade = 69% trade value Sources: International Trade Administration, U.S. Dept. of Commerce and Bureau of Transportation Statistics

Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value NAFTA Surface Trade MX CA Total Billions 126% 52% 73%

Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value Mexican Surface Trade Truck Rail Other Billions 118% 157% 28%

Source: Bureau of Transportation Statistics Includes exports & imports for all surface modes, value Canadian Surface Trade Truck Rail Other Billions 40% 38% 304%

Congestion and Infrastructure  Truck crossings: Over 14 million N. border, 8 million S. border  Congestion at borders Hard on drivers and equipment Environmental impact Increase cost of goods on consumers  Infrastructure Development TEA-21: $700 million for border infrastructure New Reauthorization: Border vs. Corridors Borders: $1billion House, $1.13 Senate Corridors: $ 3.3 billion House, $1 billion Senate Physical infrastructure & technology needs

Aftermath of 9/11  Legislative initiatives: USA PATRIOT Act (2001) Aviation and Transportation Security Act (2001) Enhanced Border Security Act (2002) Maritime Transportation Security Act (2002) Bioterrorism Act Safe Explosives Act (2001) Homeland Security Act (2002)  Regulatory Initiatives

Enforcement & Facilitation  Customs U.S.: ACE/ITDS, CTPAT/FAST Canada: PIP/FAST Mexico: FAST  Immigration Entry/Exit Control System (U.S.VISIT)  Transportation Security Agency Functional, Cross Modal Planning Container Security (International) Rules Worker Credentialing

Free and Secure Trade (FAST)  FAST = Facilitate trade + secure supply chain  FAST – N. Border (12/02) C-TPAT/PIP cargo (importer) Highway carrier agreement FAST driver registration ($50)  FAST – S. Border (9/03) C-TPAT cargo (importer & manufacturer) Highway carrier agreement (even if N. border approved) FAST driver registration Seals requirements

Automated Commercial Environment/ International Trade Data System  Critical process for Motor Carriers: Increment 1, Release 2 will result in creation of electronic truck manifest (Spring ‘04) Finalize truck manifest for motor carriers by March/April for the Customs/eCP by mid-May  ITDS now part of eCustoms Partnership Part of ITDS: Census, FDA, INS, Customs other agencies expected to sign on

Trade Act of 2002 Section 343(a)  Final Rule implementing Trade Act of 2002:  Inbound 30 minutes (FAST) 1 hour (non-FAST) No communication back to MC PAPS and FAST(NCAP) Release mechanisms Implement at POE 90 days after FR notice LTL/Expedited FAST carriers expedite secondary  Outbound: Automated Export System’s (AES) Shipper Export Declaration (SED) USPPI to submit data Carrier ID (SCAC), Carrier name, Destination carrier identifier Timeframe: 1 hour prior to departure

Background Checks  Patriot Act: CDL-HME  Safe Explosives Act of 2002 Effective Jan. 24 th, 2003 prohibits certain persons from possessing explosives: includes aliens, i.e. Canadian and Mexican drivers  TSA & DOT: Retain exclusive jurisdiction of Hazmats (Patriot Act).  Transportation Worker ID Card (TWIC)  Need for harmonization of checks

U.S. VISIT  Entry/Exit Immigration Control System Air/Seaports Dec. 2003; Land Ports Dec  ATA Focus Must take known entities, FAST/CTPAT into consideration Aggressively implement Border Accords with Canada and Mexico Provide greater resources at POEs for human, technology and infrastructure needs Border Infrastructure costs  DMIA out, CWG back in

Conclusion  Trucking essential to NAFTA Trade  Uniformity and Interoperability  Must balance enforcement and trade facilitation  Closer cooperation among: Government agencies and trade community: information and possible intelligence sharing U.S. government agencies: better database interconnectivity and information/data exchange North American government agencies: Canada, Mexico & U.S. develop better information/data exchange mechanisms for tracking entry/exit of cargo and people